Investment Fees

Investment Fees

The fees and charges outlined here are for information puposes only. Each fund company charges varying amounts of fees and charges, which are detailed in their prospectus. Fees and charges levied by the fund companies are subject to change. Clients should obtain a copy of the prospectus from the website of each fund company in which they intend to invest.

SALES CHARGES: Clients will normally be charged a sales commission to invest in a mutual fund. Sales commissions vary by fund company. Bermuda Offshore Investment Services offers clients two sales charge options. You can choose to pay a commission when you purchase your investment (called an initial sales charge), or you may or may not be charged a fee when you redeem your investment (called a deferred sales charge). Clients should consider the impact of both sales charge types, taking into consideration the amount they are going to invest, how often they are going to add to their account, and how long they intend the money to remain invested.

Option 1: Initial Sales Charge

The table below details the default charges under the initial sales charge. If you choose this option, the initial sales charge will be deducted from the amount you wish to invest. There is a charge for each new purchase made, unless the transaction is a switch from one fund to another in the same fund “family”. However, there is no redemption fee charged at the time you wish to sell your units. The fee is based on the dollar amount of each purchase. There are no other consultation fees or annual administration fees levied by BOIS.

Purchase Amount

Initial Sales Charge

$0 to $49,999

5.0%

$50,000 to $99,999

4.5%

$100,000 to $249,999

3.5%

$250,000 to $499,999

2.5%

$500,000 to $999,999

1.25%

$1,000,000 and over

negotiable

Option 2: Deferred Sales Charge

The deferred sales charge option allows an investor to place 100% of their money in the investment of their choice, with no initial sales charge at the time of purchase. There may or may not be a redemption fee, determined by the length of time the amount to be withdrawn has been invested within the fund company. Full details are provided in each fund’s prospectus. The redemption fee declines each year that the money remains invested with the Fund Company, and drops off entirely after 4 to 6 years.

Transfers from one fund to another fund within one fund company are not considered a redemption, and do not trigger a redemption fee. Additionally, Canadian Domiciled fund companies allow investors to redeem up to 10% of their units annually for no charge.

Under this option, it is possible to make an investment without paying any sales fee, providing the funds remain invested with the fund company for the amount of time specified in the fund prospectus. There are no other consultation fees or annual administration fees levied by BOIS.

Sample deferred sales charge schedules

For commonly held Non-Canadian Domiciled fund companies:

Fund Company

ANNUAL FREE ALLOWANCE

Year 1

Year 2

Year 3

Year 4

Year 5

Fee is based on

Fee for redemption in excess of the free annual allowance:

Legg Mason Global Investments

0.00%

5.00%

4.00%

3.00%

2.00%

1.00%

Lessor of cost or market

MFS Meridian

0.00%

4.00%

3.00%

2.00%

1.00%

Lessor of cost or market

Franklin Templeton Offshore

0.00%

4.00%

3.00%

2.00%

1.00%

Lessor of cost or market

For commonly held Canadian Domiciled fund companies:

Fund Company

ANNUAL FREE ALLOWANCE

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Fee is based on

Fee for redemption in excess of the free annual allowance:

CI Funds Canada

10% of Dec 31 Balance

5.50%

5.00%

5.00%

4.00%

4.00%

3.00%

2.00%

Cost

Dynamic Canada

10% of Dec 31 Balance

6.00%

5.50%

5.00%

4.50%

4.00%

3.00%

Cost

Mackenzie Canada

10% of Dec 31 Balance

5.50%

5.00%

5.00%

4.00%

4.00%

3.00%

2.00%

Market Value

Contact Bermuda Offshore Investment Services for additional information and the required forms to open an account.

Option 3: Management Fee

No fee or sales charge at the time of purchase and no fee or charge at the time of redemption. Annual management fee is collected quarterly, in advance.

ASSETS UNDER MANAGEMENT

ANNUAL FEE

$1,000,000 to $2,500,000

1.0%

$2,500,000 to $5,000,000

0.75%

$5,000,000 and over

negotiable

Other than the fees outlined above, there are no additional transaction, management or advisory fees charged by Bermuda Offshore Investment Services Limited.